Folks, it's finally happening... Gold prices are soaring. Now, if you're like me, you probably remember all the talk about gold during the peak of the COVID-19 pandemic. A
Gold Is Soaring... But Miners Are Struggling
By Vic Lederman, editorial director, Chaikin Analytics
Folks, it's finally happening...
Gold prices are soaring.
Now, if you're like me, you probably remember all the talk about gold during the peak of the COVID-19 pandemic. After all, it was obvious we were entering an inflationary period.
And just about everyone knows the refrain – "gold is an inflation hedge."
But gold prices stayed stubbornly range-bound. Or in more simple terms, gold traded mostly sideways.
Now, that's changing. Gold prices have been on a tear recently. And they just hit a new all-time high.
One ounce of gold is currently trading for about $2,160. That's roughly $100 more per ounce than the 2020 peak.
But this change in momentum hasn't made its way to gold miners. In fact, gold miners are down about 19% from their 2023 peak.
So today, let's take a closer look through the lens of the Power Gauge...
Marc Chaikin's award-winning Power Gauge system pinpointed the No. 1 stock of the 2016 and 2020 election years months in advance. Now, it just flashed 'Buy' on the No. 1 stock to buy ahead of the 2024 presidential election... plus, a popular stock he's urging you to SELL immediately. Until midnight tonight, you can both tickers (plus $14,499 worth of research and free bonuses) right here.
Legendary investor Whitney Tilson just posted a new portfolio of stock picks. He isn't buying the Magnificent 7... Or putting an equal amount of cash into each. Instead, he's using the Monte Carlo Method to see which of 4,817 stocks could double your money. Click here for the full details.
We'll start by looking at SPDR Gold Shares (GLD). It's an exchange-traded fund ("ETF") that first listed in 2004. And it has traded on the New York Stock Exchange since 2007.
Today, GLD is the largest physically backed gold ETF in the world. It currently holds more than 26 million ounces of gold bullion worth roughly $56 million.
Keep in mind that GLD doesn't earn a Power Gauge rating. But there's still a lot we can learn about the ETF in our system. Take a look at this chart...
First, notice the dashed line across the top. That's where gold prices peaked in 2020.
We can clearly see on the chart that the new high is a major change in momentum. But that doesn't mean that gold is outperforming other assets.
The red and green bar in the panel below the price chart shows us GLD's relative strength against the S&P 500 Index. And once again, it's clear – gold has unperformed stocks for the majority of the past five years.
That's true even when you take the recent big move up into account.
Now, you might think that the big upward move would translate into major gains for gold miners. But that's not the case.
This time, we can use the Power Gauge to take an even deeper look – using the VanEck Gold Miners Fund (GDX). This ETF holds a basket of companies involved in the gold mining industry.
Right now in the Power Gauge, the fund itself holds a "very bearish" rating." And out of its 29 holdings with ratings in our system, none of them earn a "bullish" or better ranking. Seventeen are "neutral" and 12 are "bearish" or worse.
As you would expect, that translates to terrible performance on the chart...
Once again, I've added a dashed line at the 2020 peak. It makes it easy to see the dramatic downturn that gold miners are experiencing. You can also see that the fund's relative strength versus the market is similarly abysmal.
So it's likely you will have seen stories in the news about soaring gold prices. And you might even consider picking up a gold mining stock or two.
Well, the Power Gauge is clear...
Things are looking a little better for gold prices. But this industry hasn't turned the corner yet.
Personally, I'll be watching gold miners closely for a turnaround. Soaring gold prices could signal a big move is in the making.
But today's "very bearish" Power Gauge rating for miners means that it's time to wait and see.
Good investing,
Vic Lederman
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
+0.25%
15
14
1
S&P 500
+0.51%
191
249
57
Nasdaq
+0.63%
40
49
11
Small Caps
+0.71%
503
1016
391
Bonds
+0.57%
— According to the Chaikin Power Bar, Large Cap stocks and Small Cap stocks are Bullish. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Real Estate
+2.32%
Materials
+2.16%
Utilities
+1.77%
Energy
+1.63%
Information Technology
+1.23%
Staples
+1.02%
Industrials
+0.8%
Financial
+0.62%
Health Care
-0.01%
Communication
-0.28%
Discretionary
-1.94%
* * * *
Industry Focus
Innovative Technology Services
37
54
9
Over the past 6 months, the Innovative Technology subsector (XITK) has underperformed the S&P 500 by -4.05%. However, its Power Bar ratio, which measures future potential, is Very Strong, with more Bullish than Bearish stocks. It is currently ranked #10 of 21 subsectors and has moved down 2 slots over the past week.
Top Stocks
TSEM
Tower Semiconductor
CTSH
Cognizant Technology
NVDA
NVIDIA Corporation
* * * *
Top Movers
Gainers
DXCM
+9.8%
ALB
+9.31%
CINF
+5.21%
PFE
+4.26%
SWKS
+4.16%
Losers
BF.B
-7.32%
NTRS
-4.56%
STX
-4.55%
PANW
-4.21%
MS
-3.89%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
AVGO, COST, DOCU
BJ, BURL, CIEN, TTC
GPS, GWRE, MRVL
MDB
No earnings reporting today.
Earnings Surprises
BF.B Brown-Forman Corporation
Q3
$0.60
Beat by $0.04
EBS Emergent BioSolutions Inc.
Q4
$-5.08
Missed by $-4.45
BRCC BRC Inc.
Q4
$0.13
Beat by $0.16
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at punjabsvera@gmail.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
